Lee County cuts called for, then criticized

Jun. 24, 2013

thinkstock.com

Written by

Commissioners on Monday heard from constitutional officers, who plan on giving out pay raises, as Lee County faces a growing deficit.

The budgets for Lee’s constitutionals are set to increase general fund expenses by $5.6 million, contributing to a deficit that is estimated to rise by $3.8 million to $33.8 million for the fiscal year starting Oct. 1.

“Everybody seems pretty comfortable, ‘we’re just going to raise taxes, and this will all go away,’” Kiker said. “I don’t want that to be their charge. I think we still need to work on getting the shortfall down by cutting costs and looking for other opportunities.”

Firing back, Commissioner Tammy Hall demanded that her fellow commissioners state what areas they want cut.

“I think if you have specific things, let’s say them, for goodness’ sake. Just say them right here,” Hall said.

Hall said staff previously presented options to cut Lee’s shortfall by $15 million. Staff offered that Lee could decrease its shortfall by closing parks, reducing bus services and slashing programs for the needy.

Hall said those options are some of the few Lee County has left.

Commissioners in August will talk about specific areas to cut, including a bus route that serves FGCU.

Commissioners today will consider paying a contractor up to $29,194 to study a bus fare increase. The move, LeeTran Director Steve Myers said, could pull in an additional $300,000 in revenue.

Wilkinson said that after cutting costs and manpower needs for the past several years, his employees are owed raises. The impact to Lee’s general fund, he said, will be minimal, as the raises will be paid by 90 taxing authorities his office serves in Lee County.

Tax collector employees earning less than $40,000 will receive $1,400 raises, while those earning more than $40,000 will collect $1,000 a year more, Hart said. The raises, Hart said, are based on state recommendations.

Hart said that commissioners can expect a $7.7 million refund from his office in the upcoming year — more than half his nearly $14.2 million budget. The pay raises, he said, will have little if any impact on Lee’s general fund.

Commissioners in August will consider whether to give Lee’s 2,500 or so general employees pay raises. Most of those employees have had their pay frozen for the last five years.

It would cost Lee a little more than $1 million to fund 3 percent raises for general employees.

Lee’s lead number-cruncher, Assistant County Manager Pete Winton, pointed to the sheriff’s increased budget and rising pension’s costs, as the reasons Lee’s deficit continues to grow.

“We had hoped to cut the budgets more than we did, but you cut in one area and then you get some more in other areas,” Winton said.

Lee’s pension expenses are expected to increase by more than $5 million because state officials are making local governments set aside more money to cover pension promises, Winton said.

The sheriff’s office will have a $2.4 million uptick in pension costs, which contributed to a budget that is set to rise by $4.8 million.

Appearing in front of commissioners, Scott said that his budget increase amounts to two pennies a day for residents.

Lee shed about $2 million in costs when its emergency airlift program, Medstar, was privatized.

Also in public safety, Lee expects to rake in about $2 million more in revenue after commissioners hiked charges for ambulance rides by as much as 30 percent.

Among revenue generating options, Winton said putting surcharges on Lee County Electrical Cooperative bills is a matter of fairness.

Lee County Electric Cooperative’s 87,000 customers aren’t paying a county surcharge on electric bills, while Florida Power and Light consumers in unincorporated areas pay a 3 percent fee. Commissioners could also raise FPL’s surcharge by 50 percent to 4.5 percent.

By maxing out surcharges for customers of both companies at 4.5 percent, Lee could collect an additional $7.3 million.

Commissioners will continue budget considerations in August, after returning from a five-week recess that starts after today’s meeting.